Good to see that you're very prudent in your retirement planning. Saving $1500 pm or $18k pa will surely prepare you well for inflation. In fact, you have over provided.
At 65, your
CPF Life starts paying you $3600 pm, which makes your passive income $7,600 pm! Even if your expenses increases to $3500 pm when you reach 65, no problem at all! Excellent!
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Originally Posted by Unregistered
We will soon reach 55 years old. We are ready to retire at 55 because we have paid off our flat's mortgage and our children are grown up. We are debt free too.
We have been saving and investing for more than 30 years and now enjoy a healthy passive income from our investments that would be enough for the two of us in retirement. Our passive income is $4000 pm while our expected expenses is $2500 pm. We can save $1500 pm to take care of future inflation.
Our monthly expenses for the two of us would include food & restaurants ($800), utilities ($100), public transport ($100), medical fees & insurance ($600), donations to charities ($100), entertainment ($200), overseas holidays ($400), and miscellaneous items ($200).
We plan to do active charity work when our retirement starts. We strongly believe that those who are better off and more successful in life must help the less fortunate ones. This way our society will be a more compassionate society.
We also look forward to travel to other countries during non peak seasons as it is cheaper.
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